Reading Tools

MAG pulls off £280m refinance

Airport gets interesting start to the year

Published on January 6th 2011.

Manchester Airports Group (MAG) has negotiated a new £280m five-year financing facility with a group of seven major banks.

The facility refinances existing funding and will support the future investment and growth of MAG, which is the UK’s largest British-owned airport group and serves 24 million passengers through its ownership and operation of Manchester, East Midlands, Bournemouth and Humberside Airports as well as the MAG Developments property business.

The new financing will allow the airport to invest in projects including an upgrade for Terminal 3 and the resurfacing of Runway 1, which starts this week, and will cost at least £20m.

The deal represents one of the largest financing transactions arranged in Manchester in recent years. The facility is provided through existing relationship banks including Barclays, the Co-operative Bank, Handelsbanken and RBS, together with further strengthening through the addition of HSBC, National Australia Bank (through its subsidiary Yorkshire Bank) and Santander.

MAG’s group finance director, Ken Duncan, said: “We are pleased to have put in place a competitive funding structure with a strong group of relationship banks. This deal secures funds to support the development of our group of airports, demonstrating real confidence in our business and our strategy.”

Chris Wild, head of The Co-operative Bank’s structured finance unit, said: "MAG’s ability to raise substantial funding and widespread banking support in such challenging markets is testimony to the strength of its business and management team. MAG remains a long-standing and major customer of the Bank and personifies the partnership approach The Co-operative Bank values.”

John Powell, corporate director at Barclays Corporate, said: "Manchester Airport Group Plc is a key relationship for both Barclays Corporate and Barclays Capital. Our participation in this deal confirms our position as the leading financier to the group. We are delighted to continue to support the group in the fulfilment of their operational and strategic goals."

Like what you see? Enter your email to sign up for our newsletters which are chock-a-block with more great reviews, news, deals and savings.

Get a life ! Air travel is an essential part of a modern world. Not only to transport people but commodities.

The development of the regional airports which the likes of BA have abandoned is good news. Hopefully Manchester see's improved investment from other airlines such as Virgin's recent decision to expand its route network to include Las Vegas direct !

Anonymous, by your logic the Coop shouldn't be involved in financing anything that contributes to CO2 emissions. Which is pretty much all human activity. Presumably you've offset the emissions produced submitting that comment from your home built wooden internet access loom? :)

Alternatively the Co-op could take a pragmatic approach and only invest in organisations that are taking steps to reduce emissions. Such as Manchester Airport Group. Or would you prefer that HSBC and Santander stepped in to cover the Co-op's share with their stated sole legal responsibility to their, erm, shareholders?